Thomas,
I was surprised to find this thread, especially since I own both. Thanks for the PEP analysis.
I was shocked to learn that PEP only has 8% of their business outside the U.S. I'm working in Taiwan right now, so I can comment a little on PEP's presence in Asia. KO, of course, is doing well on the fountain side, but PEP's restaurants are very popular (KFC and Pizza Hut - the only Taco Bell in Asia is in Guam) throughout the countries that I've visited. PEP seemed to have more fountain/retail business in the Philippines, but KO dominated Indonesia.
I, too, like what Frito Lay adds to the mix. But, they need to tailor their snacks to the variety of tastes that exist throughout the world. For example, fish-flavored (squid, shrimp, etc.) chips are extremely popular in Taiwan, as well as in some other Asian countries. If Frito Lay wants to attract more internat'l business, then they need to come up with this type of snack. Or, buy a company and use their expertise in advertising/promotion/distribution.
PEP is getting pounded in Latin America. I hope they are learning some lessons, so the same thing will not happen in Asia.
Thanks again,
Jon |
